ConsenSys co-founder joins DARMA crypto fund, goes long on Ethereum

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Andrew Keys, the co-founder of ConsenSys, recently joined DARMA capital, a crypto-focused investments fund, as the newest managing partner. Keys strongly believes in Ethereum and is one of the main figures in DARMA’s decision to position their high-net-worth accredited investors for a decade long Ethereum bull run. 

Yesterday, Andrew Keys announced that he is moving from ConsenSys to DARMA capital as the newest managing partner. He joins James Slazas, the former head of capital markets at ConsenSys. At the same time, he stays at ConsenSys at the advisory board.

DARMA (Digital Asset Risk Management Advisors) capital is a CFTC-regulated firm with approximately $100 million in assets under their management. These are the funds of the high-net-worth accredited investors which are meant for the Ethereum “Optimized Long fund”. However, this Ethereum long position doesn’t stop at just being a long-term investment. The main idea for this Ether long-run is to accumulate more Ethereum. Andrew Keys revealed that his goal is to accumulate 1 percent of the total funds per month.

“So if you gave me 100 ether, my goal would be to produce 1 ether a month,” Keys says.

He explains that this is no “hodling”. Ultimately, their plan is to spot the market “highs” and “lows” in order to accumulate more digital assets.

Moreover, Keys has long been rooting for Ethereum. In 2018 he did an interview at the Economic Forum at Davos where he said:

“We will have a decentralized World Wide Web, and it will impact every aspect of our humanity. I’m going to be able to have peer-to-peer transactions with counter-parties without a bank, or a Facebook, or an Uber, an Amazon, an eBay in the middle.”

DARMA Optimized Long-ETH Fund

Or in short – DOL-ETH, is a program which automatically manages investor digital asset portfolios. It is designed to identify the market cycles and not only hold the assets as such. Their main point is to “create alpha”. Alpha is often referred to as an investment strategy, which ultimately means to “beat the market” or spot the edge. It refers to the idea that markets are efficient, and so there is no way to systematically earn returns that exceed the broad market as a whole.

Moreover, the company already has plans for the upcoming future, as they won’t stop at an individual Ethereum Long fund. They are in the works to providing a bitcoin long fund as well in the upcoming months. However, an interesting decision is to offer a similar long fund on Filecoin. Andrew Keys explained that investors can expect this sometime next year.

“We believe [those tokens] will be the components of the next-generation internet and essentially there is a new asset class in what I would call crypto commodities. So we’re not interested at the application layer, we’re interested in the protocols that many different applications will use,” clarified Keys.

ConsenSys and DARMA will Work Together

As already mentioned, Keys transitioned from ConsenSys to working full time at DARMA, however, he will stay as an advisor at ConsenSys. ConsenSys is a blockchain software company. Since Joseph Lubin, the co-founder of Ethereum, founded the company, their main field of operations is developing decentralized software services and applications that operate on the Ethereum Blockchain. ConsenSys has invested in DARMA in the past, and it will stay as an investor now.

Additionally, this perfectly aligns with what Andrew Keys has done in the past. He revealed that this shift matches his personal interests. 

“My core competency has been in finance and my secondary competency has been in technology,” he said.

Why DOL-ETH is better than other funds?

Keys explains that there’s a void in the market. He also believes that this Ether long fund is a simple solution and a necessary missing piece of the market.

“I think the investment stage, if you look at the PwC blockchain hedge fund report, over 70 percent of them have less than $10 million assets under management, half of them don’t use a custodian and it’s very immature. We have $100 [million] AUM, we have one of the best custodians in Opus, we have KPMG as an auditor,” explains Keys.

However, at the moment, only accredited investors, family offices and institutions can participate in this fund. 

Source:

https://www.ccn.com/crypto-hedge-fund-long-term-ethereum
https://www.coindesk.com/consensys-capital-co-founder-departs-to-bring-wall-street-money-to-ethereum

Photo by rawpixel.com from Pexels

7 Ways How to Report a Scam Exchange

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In this article we will look over the 7 ways how to report a scam exchange.

So you have been scammed by a shady exchange. This is nothing new in the cryptocurrency field, and many of us have been there. Precedents like BiteBTC, Coinsmarkets.com, Bitconnect, Bitpetite and many more have “exit-scammed” and stole their users’ funds. Although previous practice shows that there is not much you can do about this situation, we stress it’s not all that black and white. Here’s what you can do if your exchange of choice exit-scammed, locked you out of your funds, doesn’t let you withdraw your funds, closes their website and etc.

1. Contact your local authorities

The first thing you can do is to contact your local authorities. You go to your local police station and file a complaint about an internet fraud. From that point on, it is up to them if they want to get in touch with their international colleagues and address the situation. It’s almost the same practice what you would do if your bike got stolen or any other everyday theft. Of course, it is up to you if you want to help the investigation by actively getting involved.

2. Let everyone know of your situation publicly

Next, you can do a series of posts, blog posts, twitter threads about your particular case online. Use social media like Facebook, Twitter, LinkedIn, Reddit, Bitcointalk or any others. Make sure you tag in the subject which scammed you. Also, tag in your local authorities pages or profiles. Use hashtags like #scam #fraud and similar to raise more awareness of your situation. Also, make sure to attach any visual material you have. Try to find similar cases to yours and engage with other people who are in the same position as you are. Maybe somebody got further in the case than you and knows something you don’t.

3. Contact your bank

If you sent your funds to the exchange with the help of your local bank account, and these funds are 100% legal and you can prove it, you can contact your local bank. Contact them by explaining your situation and providing bank accounts or addresses where the money was sent. You can raise awareness by letting the bank know that this particular bank account defrauded you. This is done so that the bank can identify these bank accounts and probably interfere their future operations. Maybe they’ll even black-list this account.

4. File a complaint at the U.S. Commodity Futures Trading Commission

While the previous three options were related to your local authorities, this is where international authorities come in. CFTC is an international establishment and their mission is to protect users from internet scams. You can report a scam on their website. Their mission reads:

“The mission of the Commodity Futures Trading Commission (CFTC) is to foster open, transparent, competitive, and financially sound markets. By working to avoid systemic risk, the Commission aims to protect market users and their funds, consumers, and the public from fraud, manipulation, and abusive practices related to derivatives and other products that are subject to the Commodity Exchange Act (CEA)”

In this link you can report your scam exchange by describing the situation, telling about the firm/individual you are complaining about, telling about yourself, and the instruments that you used. Also, you can upload additional files which would help the investigation. 

5. Federal Bureau of Investigation: Internet Crime Complaint Center (IC3)

Another international option is to file your complaint to the FBI special Internet Crime Complaint Center. Their mission is to ensure positiveness and safety environment in online advertising, freeware, mobile apps, and even virtual currency. In the past couple of years, the FBI IC3 Center has received thousands of complaints about more than $15 million stolen in crypto scams combined. You can file your complaint by filling out the complaint form.

Previously their primary focus was on Telephone, online advertising, phishing e-mails, and pop-up messages, but now they have involved cryptocurrency-related scams as well.

6. Better Business Bureau

BBB is a trust marketplace where buyers and sellers trust each other. Although this company is mainly focused on U.S., Canada, and Mexico, it handles international companies and is willing to guide a scam victim through the process of filing a complaint. Also, they have their own database where you can search whether the company have any other complaints.

Just visit their webpage and follow the instructions. 

7. USA.GOV’s Online Safety

Although you might not be from the United States, you can contact them to find out which exact agency you should contact for your specific case. The page consists of a few links of government authorities which could handle your case. They mention government authorities such as the FBI, the Federal Trade Commission (FTC), EConsumer.gov and the Department of Justice (DOJ). In addition, they have put out some pointers on how to protect yourself on the internet.

Visit their webpage for more information.

Conclusion

We contacted many lawyers and people who are connected with law and finance. They all say that you should better forget about your money/investment which you lost because there is literally nothing you can do. The main reason being that these companies have a hidden true beneficiary and they choose specific countries where to register. Mostly those are countries with high risk jurisdictions which aren’t cooperating with international organizations. In addition, it is relatively easy to become a licensed registered agent within these countries. The competition has grown fierce, costs have gone down, and it’s easy to start a reselling business and still offer attractive pricing while raking in a nice margin.

You can check the list of some of these countries here and here.

In this article we kind of proved the opposite. Actually, there is so much you can do. You can report a scam to these authorities. Those are your funds. Nobody likes to lose money. These cryptocurrency scam exchanges always seem legit judging by their UI and special offers they provide. That is a clear consumer deception, and the authorities should properly address these cases. Hey, at least it is better to sit around and do nothing about your money. Even if you will not get your funds back, you will have the feeling that you did everything you could. 

Source:

https://www.lifewire.com/how-do-i-report-internet-scams-fraud-2487300
https://forms.cftc.gov/Forms/TipsAndComplaints.aspx
https://www.cftc.gov/About/MissionResponsibilities/index.htm
https://complaint.ic3.gov/default.aspx?
https://www.bbb.org
https://www.usa.gov/online-safety
https://www.cryptovibes.com/editors-choice/where-to-apply-if-you-got-scammed-by-exchange-or-fake-cryptocurrency/
https://www.streber.org/2015/10/jurisdiction-spotlight-seychelles/
http://www.fatf-gafi.org